The Dubai Financial Market (DFM) announced its consolidated financial results for the period ended June 30th, 2024. The exchange reported a net profit before tax of AED195.4 million ($53.19 million), marking a significant 74 percent increase over the same period in 2023.
The first half (H1) of 2024 saw a surge in trading activity, higher trade values, and an influx of new investors. Additionally, DFM hosted its annual Capital Market Summit, attracting over 1,000 global delegates. This landmark event offered key insights into the future of finance, underscoring DFM’s status as a leading global listing venue.
Commenting on DFM’s performance, Helal Saeed Al Marri, chairman of DFM, said, “We are proud to report a robust financial performance in H1 2024, reflecting the solid foundation we have built. The success of our Capital Market Summit underscores our commitment to fostering a dynamic marketplace that encourages global dialogue and collaboration. We will continue to deliver value for our stakeholders by focusing on innovation, strengthening our infrastructure, and diversifying our service and product offerings. These efforts reinforce the exchange’s position as a leading financial market in the region, solidifying Dubai’s stature as a key player on the global financial stage.”
Increase in consolidated revenue
DFM’s total consolidated revenue experienced a 40 percent increase, rising to AED305.7 million in H1 2024, up from AED218.1 million in the same period of 2023. This revenue comprised AED154 million from operating income and AED151.7 million from investment returns and other income. For the same period, the total expenses excluding tax increased to AED110.3 million, compared to AED106 million in H1 2023.
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Spike in trading activity, investor participation
H1 2024 witnessed a significant boost in trading activity on the DFM, with the total number of trades reaching 1.07 million, reflecting a 22 percent increase compared to the same period in the previous year. Furthermore, the total trading value rose by 4 percent to AED48 billion. The DFM General Index, however, declined marginally by 0.73 percent during this period.
Surge in foreign investment
In H1 2024, DFM attracted 72,583 new investors, with the majority (85 percent) coming from foreign countries. Institutional investors were particularly active, accounting for 66 percent of the trading value, and foreign investors recorded net purchases totaling AED1.2 billion.
To further highlight investment opportunities within Dubai’s vibrant capital markets, DFM hosted its annual roadshow in London in June 2024, in collaboration with HSBC’s GCC Exchanges Conference. The event featured 14 leading issuers with a combined market capitalization of AED326 billion. This year’s edition facilitated 90 meetings, resulting in over 270 interactions, and offered global investors exclusive insights into the region’s investment opportunities.
Celebrating landmark IPO listings in H1 2024
Moreover, the Dubai Financial Market saw remarkable achievements in H1 2024. In March, Dubai’s leading parking operator, Parkin, experienced a surge of over 30 percent upon its public debut. The IPO achieved an unprecedented oversubscription level of approximately 165 times across all tranches combined, setting a new record for the exchange.
Subsequently, in May, Spinneys, a premium grocery retail operator, also went public with its offering. The offering was oversubscribed by an impressive 64 times, indicating significant interest from retail investors. As a result, the UAE Retail Offering component of the IPO was increased accordingly.
These successful IPO listings on the DFM showcase the market’s growing vibrancy and the appeal of local companies to both institutional and individual investors in H1 2024.
Innovative market initiatives
Additionally, DFM launched several market initiatives aimed at driving growth and innovation. ARENA by DFM, an innovative platform for IPOs, was announced in May. Designed to facilitate growth opportunities for both companies and investors, ARENA represents a pioneering approach to capital raising and investment within the MENA region. It allows a diverse range of private companies to access capital through various assets, including equity and debt, with plans to introduce additional asset classes.
Additionally, DFM introduced the enhanced iVestor App, underscoring its commitment to empowering investors with cutting-edge digital tools for financial management. This makes the platform more accessible, efficient, and engaging for retail investors. These initiatives demonstrate DFM’s focus on innovation, strengthening infrastructure, and fostering a vibrant and inclusive financial ecosystem for all stakeholders.
Diverse market capitalization
The market capitalization of companies listed on the Dubai Financial Market reached AED679 billion in H1 2024. This reflects the diverse composition of Dubai’s gross domestic product (GDP). The sector distribution by market capitalization is as follows: Financials account for 42 percent, Utilities for 20 percent, Real Estate for 18 percent, Industrials for 13 percent, and Communication Services for 4 percent, with the remaining sectors, including Consumer Staples, making up the rest.
This data underscores the potential to attract more companies from underrepresented sectors, which could further deepen and diversify the offerings on the DFM.
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